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BBA Sept, Mortgage lending up 8% YoY
HAMISH_MCTAVISH
Posts: 28,592 Forumite
BBA Sept.
Mortgage lending for house purchases up 8% YoY by volume, and average value of each mortgage at £142,000 remains the same as a year earlier.
BTL mortgage lending in growth.
Overall debt continues to reduce, and savings increase, with people paying down mortgages and consumer credit as they take advantage of record low interest rates.
Net lending for loans and overdrafts in Sept was negative 200 million as repayment exceeded new lending.
Net change in personal deposits/savings in Sept was positive 2.5 Billion.
Mortgage lending for house purchases up 8% YoY by volume, and average value of each mortgage at £142,000 remains the same as a year earlier.
BTL mortgage lending in growth.
Overall debt continues to reduce, and savings increase, with people paying down mortgages and consumer credit as they take advantage of record low interest rates.
Net lending for loans and overdrafts in Sept was negative 200 million as repayment exceeded new lending.
Net change in personal deposits/savings in Sept was positive 2.5 Billion.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
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Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
0
Comments
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It's started.
Hold onto your hats, boys and girls, the great pwoperdee boom, 2011-2020, is upon us.FACT.0 -
the_flying_pig wrote: »It's started.
Hold onto your hats, boys and girls, the great pwoperdee boom, 2011-2020, is upon us.
You know you could be right there (who would have thought that house prices would have held up so well in these dire economic times).0 -
BBA statistics director, David Dooks said:
"There was a small net increase in business lending to the non-financial sector in September. Firms are continuing to build up cash reserves where possible, while concerns about the economy may be putting some investment intentions on hold.
“Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty.
“A modest stimulus to gross mortgage lending is coming from the buy-to-let sector as rental yields continue to improve”.
http://www.bba.org.uk/statistics/article/september-2011-figures-for-the-main-high-street-banks0 -
On a related note.
Gross mortgage lending likely to fall in 2012, says AMI
http://www.mortgagestrategy.co.uk/economy/gross-mortgage-lending-likely-to-fall-in-2012-says-ami/1040048.articleThe Association of Mortgage Intermediaries is predicting gross lending of between £130bn and £135bn in 2012.
In its latest Quarterly Economic Bulletin it says gross mortgage lending in 2011 is set to match £136.3bn in 2010, but will fall to between £130bn and £135bn in 2012.
The report says there are a lot of prospective homemovers who are unable to move owing to insufficient or negative equity.
The report says: “Insufficient equity blocks the market because tighter lending criteria mean many borrowers end up without the borrowing capacity to get a mortgage.
“Someone who bought on an 85% LTV in 2007 would now have only around 5% equity, nothing like enough to remortgage or move up the housing ladder.”
The average purchase LTV in 2007, for example, was 80% so many borrowers from that year will be in this position and anyone on an interest-only mortgage would be more exposed still.
The report says brokers and lenders are seeing enormous levels of enquiries about mortgages, many from first-timers.
But these volumes don’t show up in the final mortgage numbers because so many fail to qualify for the products being marketed.
The report adds: “The professed desire among some prominent lenders to take more market share is not translating into growth in the market overall. Net lending is similarly flat and likely to be close to £8bn this year, and somewhere between £0 and £10bn next year too. The number of outstanding mortgages has now fallen below 10 million for the first time in at least ten years.”0 -
On a related note.
Gross mortgage lending likely to fall in 2012, says AMI
http://www.mortgagestrategy.co.uk/economy/gross-mortgage-lending-likely-to-fall-in-2012-says-ami/1040048.article
Well, the 8% increase in house purchase mortgaging is 100% cast iron fact, whereas the likelihood of mortgage lending declining in 2012 is pure conjecture.If I don't reply to your post,
you're probably on my ignore list.0 -
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